Zimplats to get power from Cahora Bassa

By Tawanda Musarurwa
PLATINUM miner Zimplats has secured a contract to import electricity directly from the Cahora Bassa Dam, in western Mozambique, to drive its Ngezi Phase 2 expansion .
South Africa-based Impala Platinum chief executive Mr David Brown recently reported that the company had “concluded a contract to buy power directly from the Cahora Bassa Dam in Mozambique”.
Mr Brown said this during presentation of the half year to December 31 2010 results.
Implats holds an 87 percent stake in Zimplats.
He added that the arrangement had been necessitated by an unstable electricity infrastructure in the country.
Zesa Holdings is presently producing around 1 200 megawatts out of installed capacity of around 2 000MW and suppressed demand of 2 400MW.
The Cahora Bassa deal comes even as Zimplats last year completed the construction of a US$25 million 330KVA power substation in Selous aimed at easing electricity woes at the company’s operations.
Zimplats chief executive Mr Alex Mhembere last year reported that the new substation would be handed over to the Zesa during the current fiscal year.
“The construction of the new US$25 million 330 KVA power substation at Selous for the national power utility, Zesa, was completed during the year. The substation is scheduled to be commissioned and officially handed over in the first quarter of the new financial year.
“The facility will assist in ensuring a more reliable power supply to both the company and surrounding communities,” he said.
Mr Brown also said Phase 2 expansion of Zimplats was key in ramping up the mine to its desired 2,1 million ounces a year, which it hopes to achieve by 2014.
“Implats can report that the Phase 2 expansion of Zimplats to 270 000 oz/m is on track, with the completion of the Portal 3 boxcut scheduled for March 2011,” he said.
The Implats CEO also indicated that although a Phase 3 expansion programme has not been discussed with the board, such a programme was not far-fetched.
Mr Brown said discussions with the Government on indigenisation were still progressing.
Implats has indicated that it is seeking a prior agreement with the Government whereby the company gives up part of its mineral resource base in lieu of empowerment credits to be considered in terms of the country’s indigenisation regulations.